The Hindu Business Line : Market scam?

The Finance Minister has reassured us that the central bank, the Finance Ministry and SEBI are carefully watching the market activities. Hence, we can conclude that the Sensex is passing through a good time and that it may even hit 10,000 by the end of the year, if it continues to move at the same pace. However, it is for the investor to take proper care before investing his/her hard-earned money in the share business.

V. Venkitasubramanian, Kochi, vvsmani2002@yahoo.co.in

The Centre always plays doubting Thomas whenever the market booms. Why should the Government worry? This is a global phenomenon.

S. N. Thiruvazhiode, Kochi, dgmmtlsecr@kochirefineries.com

The unprecedented bull run in the stock market and past memories of scams have raised doubts. While there is elation that the market may cross the 10,000 mark, rising oil prices and the possibility of increased interest rates are worrisome factors. The experience of the last decade has made small investors wary. It is best, however, that investors choose reliable companies and banks.

A. Jacob Sahayam, Thiruvananthapuram, jacob_sahayam@yahoo.co.in

Even though the Finance Minister has been assuring investors that there is no scam in the making, the possibility cannot be ruled out. The prudent investor must study the market thoroughly and act wisely. A financial scam would affect the middle cap investors the most; they could end up losing their lifetime earnings.

A. Bhuvana Bhimaiah, Arasikere, carcow9901@gmail.com

The way the market is soaring, it could well be headed for a crash or could go for a technical correction. People have not forgotten 1992 and 2000. Scams have become part of the Indian financial system.

M. Ramakrishna Rao, Secunderabad

All this talk about scams could lead to a Sensex crash. Investigative agencies should do their homework and only then should they come out with such news.

M. N. Ravi Shankar, Joint Director, Tariffs, AP Electricity Regulatory Commission, Hyderabad

Financial markets are maturing. Economic indicators are guiding the market for the good.

M. Annapurna, Physics lecturer, Secunderabad

The regulatory framework guides consumers and balances the interests of all stakeholders. The Sensex rising may be market related, and the checks and balances will take care of the market. Rest assured, more risk, more profit.

M. Sitaramachandra, Programme Director, Micro-finance, Velugu Project, Hyderabad

What we are witnessing now is a purely trading speculative market. It is the Futures and Options market that is taking the Sensex to new high. Cash as a percentage to the total business is declining daily.

M. Sunanda Ramachandra, Manager, NABARD, Hyderabad

The less we talk, the better. The Sensex has no principles or practices. The economy is growing and, hence, the market too.

M. V. Vimala, Electronics and Telecommunications engineer, Secunderabad

For once, it is the economic indicators that are guiding the market. The growth is correlated to the Sensex and GDP and other economic indicators.

T. V. Atchutram, Under Secretary, Ministry of Steel, New Delhi

One needs to be extremely cautious while investing. At the 8500 level, it is not an investor's market but purely a trading one. Once the market has stabilised, one should invest.

T. V. B. Rohini, Vijaya Bank, New Delhi

A crash seems to be in the offing. Possibly a Diwali Sensex bonanza for all?! There are issues that are taking the Sensex to these levels. While there are political and economic factors contributing, they are negligible.

T. V. Siddharth, Aeronautical Engineer, New Delhi

The kennel squad seems desperate.

T. V. Jayaprakash, Research Officer, CADA of Kerala Project, Thrissur

The stock market index is being monitored closely by the Government, SEBI and the RBI. The Finance Minister has hinted at the Harshad Mehta and Ketan Parekh episodes and has expressed concern over the growth in the market.

S. Sivasankaran, Vice-President, The Salem Literary Society, Salem

SEBI has to ensure "a scam free market". Internal controls and checks should be incorporated to ensure that the public does not lose faith in investment.

Subbalakshmi, Madurai

Ever since the last boom turned out to be the making of a scam , any abnormal behaviour in the market, especially an up-trend, has been a source of serious worry to Finance Ministers.

The upswing need not necessarily be due to any malfeasance by an operator. An explicit expression of apprehension and proposals for probes could lead to a crash, thus causing hardship to hundreds of investors. Suspicions of a scam should have been handled more discreetly. It is in the nature of the market to move up and down even on very insignificant reasons. The present trend does not warrant worry.

T. R. Anandan, retired Vigilance Officer, Southern Telecom Region, Coimbatore

It is the sudden spurt in penny stocks, that have been gaining substantially recently, that is causing concern to the Government. This phenomenon cannot be explained on the basis of past and present performances, as these firms have zero net worth and have reappeared after 3-4 years.

The SBI and the RBI are now tracking the flows of funds from the FII's into stocks of companies whose net worth have eroded or are making losses.

It is suspected that some prominent NBFCs are also rigging share prices. Ketan Parekh's shadow continues to haunt several stocks. . In this context, the Finance Ministry is looking to verify whether brokers are responsible for the sudden spurt in B Group (mid cap) and small caps.

T. S. Sundareswaran, Consultant, New Delhi

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